Lendlease has been served with a second shareholder class action alleging the infrastructure group kept investors in the dark over the underperformance of its construction business.
Law firm Phi Finney McDonald filed the action in the NSW Supreme Court claiming LendLease violated continuous disclosure obligations by failing to inform the market of ongoing issues within its engineering division.
Lendlease shares plummeted from $21.73 in August 2018 to a five-year low $11.03 in January after what Phi Finney McDonald called a “massive underperformance” by its construction division.
The action is open to shareholders who bought stapled securities on the ASX or American depositary receipts between October 17, 2017, and February 25 this year.
A rival action filed in April by Maurice Blackburn is open to those who bought shares between November 17, 2017, and November 8, 2018.
Lendlease has denied any liability and will vigorously defend the proceedings in both instances.
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